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We are the midst of the “Santa Claus rally” period, which encompasses the last five trading days of one year and the first two of the next. If this seven-day period produces a loss for the U.S. stock market, that could have bearish implications.
So far, the S&P 500 index
SPX has support on the SPX chart at 6,840 and stronger support at 6,720 (the December lows). Bearish trading systems kick in if SPX closes below its December low at any time in the first three months of the new year, so that will be something to watch. Resistance currently is at the 6,945 high point.
This post was originally published on Market Watch
